Laws of the People's Republic of China

State Administration of Taxation

Reply of the State Administration of Taxation concerning the Issue of Tax Collection and Exemption on the Income Obtained by the World Tourism Organization in China

Guo Shui Han [2006] No. 35

The state administration of taxation of Jiangsu Province,

Your Request for Instructions concerning the Issue of Tax Collection and Exemption on the Income Obtained by the World Tourism Organization for Providing Design Labor Services (Su Guo Shui Fa [2005] No.244 ) has been received; we hereby make reply as follows:

In accordance with Item (10), paragraph 2 of Section One of Article 1 , and item (1) of Section Nine of Article 3 of the United Nations Convention on the Privileges and Immunities of the Specialized Agencies that China have signed, the direct tax shall be exempted on the income, which is obtained by the World Tourism Organization in China. Therefore, the income tax shall be exempted from the income, which is obtained by the Organization that it provides design labor service to the people's government of Wujin District of Changzhou City.

State Administration of Taxation

January 12, 2006